D is corrent. The requirement is to calculate the required unit of production level. D is corrent because the number of units is 1,015 which is equal to the Projected sales - Beginning inventory + Desired ending inventory (1,000 - 85 + 100).
A is incorrect because it is equal to Projected sales - Beginning inventory + Desired ending inventory + Prior year beginning inventory.
B is incorrect because it is equal to Projected sales + Desired ending inventory.
C is incorrect because it is calculated as Projected sales - Beginning inventory.
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